Eramet delays Indonesia mine, backs ban to help nickel (updated)
21/02/2014 14:46
* Eramet posts 45 mln eur operating loss for 2013 * Delays Weda Bay mine decision, books 224 mln eur charge * No dividend proposed; lower spending, costs eyed (Adds details, CEO comments) PARIS, Feb 21 (Reuters) - French mining group Eramet ERMT.PA postponed its flagship nickel mine project in Indonesia on Friday as it posted a full-year loss after being hit by low nickel prices. Benchmark prices of nickel CMNI3 , mainly used in stainless steel, languished at four-year lows for much of 2013 due to global oversupply, leaving many producers operating at a loss. Eramet reported a current operating loss of 45 million euros ($61.71 million) for 2013, compared with a 153 million profit in 2012 and the average of analyst estimates of a 36.5 million loss, according to Thomson Reuters I/B/E/S. This included a 222 million euro loss for the group's nickel division, its second straight annual loss. "The group's results in 2013 were essentially impacted by extremely low nickel prices," Chairman and Chief Executive Patrick Buffet said in a statement. Due to weakness in the nickel market, as well as ongoing tax and legal negotiations with the Indonesian government, Eramet said it would not take a final investment decision on the Weda Bay mining project this year as previously expected. "This postponement of the project led the Eramet group to record a 224 million euro writedown as of Dec. 31," Buffet said. Eramet has a majority stake in the project alongside Japan's Mitsubishi Corp. 7280.T and Indonesia's PT Antam. The French group said it was confident in the outlook for nickel after Indonesia's move last month to ban the export of most unrefined metals, including nickel ore. The ban has boosted nickel prices as it is expected to curb global oversupply. Eramet reported a net loss after impairments of 370 million euros and said it would not pay a dividend on its 2013 results. The company had previously forecast that current operating profit in the second half of 2013 would be "significantly lower" than in the first half, when it reported a 9 million euro loss. The group said it would pursue cost savings, with a target of 110 million euros this year after 85 million in 2013, and would keep capital expenditure below 400 million euros, 40 percent lower than the average for 2012-2013. ($1 = 0.7293 euros) (Reporting by Gus Trompiz; Editing by Blaise Robinson and James Regan) ((gus.trompiz@thomsonreuters.com)(+33 1 49 49 52 18)(Reuters Messaging: gus.trompiz.thomsonreuters.com@reuters.net)) Keywords: ERAMET RESULTS/